Fewer people were in poverty in California in 2021 than in 2019. That’s the good news. The bad news is that this was due only to government relief payments, not to an improving economy or more job opportunities.
A spokesperson for Governor Gavin Newsom credited additional state spending for the improved poverty numbers, pointing to $18.5 billion in direct payments, $8 billion in rent relief and $2.8 billion to pay off overdue utility bills. It’s not a pretty picture, especially considering the latest state budget forecast from the Legislative Analyst’s Office.
The state’s revenues grow when economic activity and job growth are strong and more Californians are working at jobs that pay decent salaries. The state’s expenses increase when more people must rely on safety-net programs.